Xin Lang Cai Jing·2025-08-29 00:34Core Viewpoint - China Pacific Insurance (CPIC) reported strong performance in 1H25, with significant growth in new business value and improved underwriting profitability, indicating a positive outlook for the company's long-term earnings and dividend growth potential [1][4]. Financial Performance - New Business Value (NBV) increased by 32.2% year-on-year on a comparable basis and by 5.6% on a disclosed basis [1]. - Group net profit rose by 11% to 27.9 billion yuan, while operating profit attributable to shareholders increased by 7.1% to 19.9 billion yuan, exceeding expectations primarily due to better-than-expected combined ratio in property insurance [1][3]. Development Trends - The company experienced a 22.8% year-on-year increase in NBV, with a comparable growth rate of 29.5% after adjusting for assumptions [2]. - The number of insurance agents grew to 186,000, a 1.6% increase year-on-year, with 39,000 new agents added, representing a 19.8% growth [2]. - The new premium income from bancassurance reached 8.84 billion yuan, up 58.6% year-on-year, with the total number of bancassurance outlets increasing by 28.9% to 13,000 [2]. Underwriting and Investment Performance - Overall premium income for property insurance increased by 0.9%, with auto insurance up by 2.8% and non-auto insurance down by 0.8% [3]. - The combined ratio (CoR) improved by 0.8 percentage points to 96.3%, with auto insurance CoR at 95.3% and non-auto insurance at 94.8% [3]. - Investment performance remained stable, with non-annualized net investment yield at 1.7%, total investment yield at 2.3%, and comprehensive investment yield at 2.4% [3]. Long-term Outlook - The company is expected to achieve steady growth in earnings and dividends due to its improving long-term operational capabilities in the context of high-quality industry development [4]. - The current trading multiples for CPIC are at 0.6x and 0.5x for A/H shares based on 2025 estimated P/EV, with target prices set at 52.60 yuan and 45.20 HKD, indicating potential upside of 31.7% and 26.3% respectively [5].